But no immediate relief, the real effect will be felt only after 15 months when the entire mechanism comes into existence
New Delhi : The much acclaimed Real Estate (Regulation and Development) Act comes into force on May 1 after eight years of long efforts, but its real effect will be felt only after 15 months when the entire mechanism comes into existence.Even the rules for implementing the law are not in place as it is now up to the Centre and the State Governments to frame them in the next six months.
The Act will, however, get the teeth only after the Real Estate Regulatory Authorities and Appellate Tribunals are constituted. It stipulates their constitution within one year.
It shall take another three months for the regulatory authorities to formulate own regulations to start functioning.
Urban Development Minister M Venkaiah Naidu said his ministry is in the process of formulating the model rules under the act to enable the states frame their own rules in quick time, besides ensuring uniformity across the country. The ministry will also come out with model regulations for the regulatory authorities. Only once the whole system takes place, the Centre and the State Government would have a say on the real estate industry.
The law provides for all real estate projects to be registered with the regulatory authorities, but that will be possible only after these authorities finalise own regulations to start functioning. The Act stipulates that the authorities must decide on the complaints of buyers and developers within 60 days. Venkaiah Naidu said the time limits fixed in the Act for setting up the authorities and framing of rules and regulations are the outer limits, but the states can speed them up to usher in relief to the home buyers at the earliest.
The Act elaborates on the functions and duties of the promoters of the residential housing projects, rights and duties of allottees, prior registration of the real estate projects with the Real Estate Regulatory Authorities, recovery of interest on penalties, enforcement of orders, offences, penalties and adjudication and the procedure for taking cognizance of offences.